T-Mobile has reached a settlement with New York state authorities following an investigation into its compliance with the Affordable Broadband Act (ABA). The state found that the company imposed a 50 GB monthly data cap on low-income home internet plans, after which download speeds were reduced from 25 Mbps to 600 Kbps.
The investigation revealed that T-Mobile restricted these low-income plans to areas with 5G coverage, excluding residents in 4G-only regions. Additionally, the company configured its website to prevent search engines from indexing pages containing information about ABA-compliant plans, hindering customer access.
Under the terms of the settlement, T-Mobile must eliminate data caps and speed restrictions, and expand the availability of these plans to all areas where it offers fixed wireless home internet within 120 days. The company is also required to remove technical barriers that prevent search engines from indexing its low-income plan information.
The ABA mandates that providers with at least 20,000 customers offer high-speed broadband to eligible households for $15 per month at speeds of at least 25 Mbps, or $20 per month for speeds of at least 200 Mbps. T-Mobile did not admit to any violations as part of the settlement agreement.
Separately, T-Mobile recently settled another case in New York regarding price increases on plans previously marketed with a lifetime price guarantee. That agreement involves up to $38 million in estimated customer benefits and a fine of approximately $98,835 paid to the state.
